fin lit- effective money management Flashcards
what is a budget?
Tahua
A budget is a financial plan for the future concerning the revenues/ income and costs/ expenses of a business’ or a person
what is income
(moni whiwhi) money that a person earns
what are expenses
(moni whakapu) Spending on consumer goods and services
what is surplus
Income is greater than planned spending
what is a deficit
income is less than planned spending
what is break-even
when money coming in (income) equals money out (spending and planned savings)
what is opportunity cost
the next best alternative given up/ forgone when making decisions
what is debt
when we owe other people/buisnesses money
what are fixed expenses
expenses that stay the same
what are variable expenses
expenses that change
what is overdraft
bank allows a person to withdraw more than what they have deposited in their bank account. Only a certain limit is allowed , and only for a specified time period
when you are making a budget what must you write
less expenses
what are smart goals
S- specific\
M- measurable
A- Achievable
R- Relevant
T- Time bound
